July 9, 2024

How You Measure Up: Top 5 Takeaways from Modal’s Data and AI Research Study

We know that AI is set to revolutionize the data & analytics industry by enabling unprecedented levels of predictive accuracy, automating complex data processes, and uncovering actionable insights that drive strategic decision-making. But, how are data leaders embracing AI’s opportunities today?

We're thrilled to share the top 5 findings from our recent AI-focused research study where we sought to understand the scope of Generative AI planning, resourcing and projected impact at enterprise companies (defined as 5K+ employees).

We received 100 responses from VP/C-level data leaders from a variety of vertical industries, and conducted follow up qualitative discussions to arrive at the top five Gen AI insights. We’ll be using these insights to improve the Modal product experience and hope these takeaways will help you scope and prioritize your organization’s AI-focused projects.

Top 5 GenAI Insights:

  1. Most organizations have a prioritized AI initiative
  2. AI projects are primarily focused on efficiency improvements and predictive insights
  3. AI projects are expected to deliver results quickly
  4. AI ownership is split, but most projects are owned by the CIO and CTO
  5. AI initiatives are well funded

Finding #1:  Most organizations have a prioritized AI initiative. While some companies are still in the process of identifying use cases and functional departments in which to test and leverage AI, 70% of the companies we spoke to have at least one current prioritized, cross-functional AI initiative. 

Finding #2:  AI projects are primarily focused on efficiency improvements and predictive insights. The majority of the prioritized AI projects at organizations are focused on productivity gains and predictive analytics. This reflects the general trend toward contextual support, task automation and intelligent recommendations. And based on respondents’ expected outcomes, 10%-30% productivity gains seemed to be the sweet spot of what the enterprises we reached were driving toward.

Finding #3:  AI projects are expected to deliver results quickly. Most AI projects are expected to deliver results in the short-term, with over 80% of responding enterprise organizations indicating the expected impact was within 2 years on sooner.

Finding #4:  AI ownership is split, but most projects are owned by the CIO and CTO. One could argue that everyone in a company needs to be thinking about how AI impacts their job and their role. When looking at organization-wide AI initiatives, we found that AI project ownership is split, and is most often owned by the CTO and/or CIO. Keep in mind that many (24%) CDO/CDAOs report to the CIO or CTO, therefore it is reasonable to assume that data teams under the CIO or CTO and the CDO/CDAO play a pivotal role in their company’s AI initiatives.

Finding #5:  AI initiatives are well funded. Almost 60% of organizations who’ve scoped a cross-functional initiative have funded it to the tune of at least six figures. And 31% have devoted at least $500,000 to the AI project. On the flip side, close to 20% of respondents reported that their orgs have not funded their AI initiative yet.

In conclusion, it's evident that companies are increasingly experimenting with Generative AI and recognizing its transformative potential across various domains. This surge in interest is not just a passing trend; it's driven by a clear mandate from C-level executives to use AI to demonstrate tangible business results and ROI. As we move forward, the organizations that strategically prioritize and invest in GenAI will be the ones to see the most significant benefits.

Modal is here to help your teams be effective using Generative AI. We enable individual team members to become adept at navigating AI and in authoring prompts that result in improved outputs from large language models (LLMs). Example topics include, but are not limited to:

  • Creating Business Impact with Generative AI and LLMs
  • Solving Business Problems with Prompt Engineering
  • Planning AI Projects with Data Governance and Privacy Principles

Request a demo to learn more. Be sure to read our previous blog post illustrating how data leaders at two high-growth, high visibility companies are navigating the burgeoning potential of AI.

Want to further discuss GenAI and other topics with your peers? Save your seat for our August Roundtable discussion called, It Takes Two: Partnering with the Business to Drive Impact & Results where we’ll discuss how data leaders can best partner with commercial teams (sales, marketing, HR, and Ops). 

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